iLearningEngines Responds to Short Report and Forms Special Committee

iLearningEngines Announces Further Response to Short Report - iLearningEngines (NASDAQ:AILEW), iLearningEngines (NASDAQ:AILE)

BETHESDA, Md., Sept. 05, 2024 (GLOBE NEWSWIRE) -- iLearningEngines, Inc. AILE ("iLearningEngines" or "ILE") a leader in AI-powered learning and work automation for enterprises, today announced that the Company's Board of Directors has formed a Special Committee consisting of independent directors to investigate allegations raised recently by a short-seller report. The Special Committee has engaged legal counsel from Paul Hastings LLP to conduct an independent investigation at the behest and exclusive direction of the Special Committee. Although the Company's independent auditors conduct periodic audits in accordance with PCAOB standards and have issued clean audit opinions with respect to their past audits, the Special Committee believes that conducting its own independent investigation into these issues is in the best interest of shareholders. The Special Committee is committed to conducting a prompt, expeditious, and thorough independent investigation, but it is unable to predict the duration or outcome of its investigation. The Company will provide further information from the Special Committee's investigation at the appropriate time. "The ILE team is proud of the AI platform that we've built. The company I founded has real products, contracts, and revenue," said ILE Chief Executive Officer Harish Chidambaran, adding, "I would like to re-iterate my firm belief that the short-seller report put out last week contains misleading statements, speculations and innuendos, and I look forward to addressing the short-seller's allegations as the Special Committee progresses in its investigation. In the meantime, we remain focused on executing our business plan and will not be distracted by typical short seller tactics." About iLearningEngines iLearningEngines AILE is a leading Applied AI platform for learning and work automation. iLearningEngines enables Enterprises to rapidly productize and deploy a wide range of AI applications and use cases (AI Engines) at scale. iLearningEngines is powered by proprietary vertical specific AI models and data with a flexible No Code AI canvas to drive rapid out-of-the-box deployment while offering low latency and high levels of data security and compliance. Serving over 1,000 enterprise end customers, iLearningEngines is deployed globally into some of the most demanding vertical markets including Healthcare, Education, Insurance, Retail, Energy, Manufacturing and Public Sector to achieve mission critical outcomes. For more information about iLearningEngines, please visit: www.ilearningengines.com. Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995 with respect to the Business Combination. Forward looking statements generally are accompanied by words such as "believe," "may," "will, "estimate," "continue," "anticipate," "intend," expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," the negative forms of these words and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the Company's ability to invest in continued platform growth; the potential benefits of the Business Combination, the Company's future growth prospects, the Company's ability to drive value for new and existing customers and the Company's ability to address market opportunities across artificial intelligence. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the iLearningEngines' management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by an investor as a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions this press release relies on. Many actual events and circumstances are beyond the control of iLearningEngines. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political, and legal conditions; iLearningEngines' failure to realize the anticipated benefits of the Business Combination; risks related to the rollout of iLearningEngines' business and the timing of expected business milestones; iLearningEngines' dependence on a limited number of customers and partners; iLearningEngines' ability to obtain sufficient financing to pay its expenses incurred in connection with the closing of the Business Combination; the ability of iLearningEngines to issue equity or equity-linked securities or obtain debt financing in the future; risks related to iLearningEngines' need for substantial additional financing to implement its operating plans, which financing it may be unable to obtain, or unable to obtain on acceptable terms; iLearningEngines' ability to maintain the listing of its securities on Nasdaq or another national securities exchange; the risk that the Business Combination disrupts current plans and operations of iLearningEngines; the effects of competition on iLearningEngines future business and the ability of iLearningEngines to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; risks related to political and macroeconomic uncertainty; the outcome of any legal proceedings that may be instituted against iLearningEngines or any of their respective directors or officers, including litigation related to the Business Combination; the impact of the global COVID-19 pandemic on any of the foregoing risks; and those factors discussed in the Company's registration statement on Form S-4, as amended or supplemented, under the heading "Risk Factors," and other documents the Company has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that iLearningEngines does not presently know, or that iLearningEngines does not currently believe are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect iLearningEngines' expectations, plans, or forecasts of future events and views as of the date of this communication. iLearningEngines anticipate that subsequent events and developments will cause iLearningEngines' assessments to change. However, while iLearningEngines may elect to update these forward-looking statements at some point in the future, iLearningEngines specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing iLearningEngines' assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements. IR & Press Contacts: Investor Contact: Kevin Hunt, ICR Inc. [email protected] Press Contact: Dan Brennan, ICR Inc. [email protected] Market News and Data brought to you by Benzinga APIs

iLearningEngines forms committee to investigate short-seller claims By Investing.com

BETHESDA, Md. - iLearningEngines, Inc. (NASDAQ: AILE), an AI learning and work automation enterprise, announced today the formation of a Special Committee by its Board of Directors. The committee, comprised of independent directors, is tasked with investigating allegations made in a recent short-seller report. To ensure the independence of the investigation, the Special Committee has appointed Paul Hastings LLP as its legal counsel. The company has previously received clean audit opinions from its independent auditors who conduct periodic reviews in line with PCAOB standards. Despite this, the Special Committee has deemed it prudent to conduct its own investigation to safeguard shareholder interests. The scope and duration of the investigation remain undetermined, and further updates will be provided when appropriate. Harish Chidambaran, CEO of iLearningEngines, expressed confidence in the company's AI platform and its legitimate business operations, which include actual products, contracts, and revenue. Chidambaran criticized the short-seller report for containing misleading information and stated his anticipation to address the allegations as the investigation proceeds. Meanwhile, the company remains focused on executing its business plan without distraction from what it considers typical short-seller tactics. iLearningEngines, with over 1,000 enterprise customers, offers an Applied AI platform that enables rapid deployment of AI applications across various vertical markets, including Healthcare, Education, and Manufacturing. The company emphasizes the security and compliance of its data-driven AI models and the flexibility of its No Code AI canvas for deployment. This announcement follows a series of forward-looking statements made by the company regarding its growth prospects, market opportunities, and the anticipated benefits of its business combination. These statements are inherently uncertain and subject to a multitude of risks, including market and legal conditions, reliance on key customers and partners, and the need for additional financing. Investors are cautioned not to place undue reliance on forward-looking statements, which reflect the company's position as of the date of this release. The company has disclaimed any obligation to update these statements in the future. The information in this article is based on a press release statement from iLearningEngines. In other recent news, iLearningEngines has announced significant salary increases and target bonuses for its top executives for fiscal year 2024. These adjustments include CFO S. Farhan Naqvi, President Balakrishnan Arackal, Chief Legal Officer David Samuels, and Senior Vice President Ramakrishnan Parameswaran. In addition, the company has secured an extra $20 million in funding, supplementing its existing Loan and Security Agreement. Lenders now include Valley National Bank and East West Bank, setting the term for the Revolving Facility at three years. The software company also faced the resignation of board member Matthew Barger, with no replacement announced yet. Furthermore, iLearningEngines has addressed allegations from a short seller report, promising a detailed response in the near future. These are recent developments in the company's activities, offering insights into its current financial and operational status. As iLearningEngines, Inc. (NASDAQ: AILE) navigates through the challenges posed by the recent short-seller report, its stock performance and financial metrics provide a broader context for investors. The company's market capitalization stands at a modest $145.41 million, reflecting investor sentiment and market conditions. Notably, the stock has experienced a sharp decline over the past week, with a one-week price total return of -21.48%, aligning with the "InvestingPro Tip" that the stock has taken a big hit recently. Moreover, the company's trading activity suggests a high price volatility, which is consistent with the "InvestingPro Tip" that AILE generally trades with high price volatility. This could be of interest to investors who are considering the timing of their investments or looking for potential entry and exit points. It is also worth noting that the stock is trading near its 52-week low, which may indicate a potential opportunity for value investors or could signal caution depending on one's investment strategy. The financial health of iLearningEngines can be further scrutinized through its revenue and profitability metrics. The company's revenue over the last twelve months as of Q2 2024 was $485.83 million, with a notable quarterly revenue growth of 33.87%. However, despite this growth, the company is not currently profitable, with a negative operating income margin of -9.0% and an adjusted P/E ratio of -1.09. This aligns with the "InvestingPro Tip" that analysts do not anticipate the company will be profitable this year. For investors seeking additional insights and tips on iLearningEngines, InvestingPro offers a comprehensive list of 15 "InvestingPro Tips" that can further inform investment decisions. Interested readers can find more information and in-depth analysis at https://www.investing.com/pro/AILE.